Are you looking for IRS mileage rates for 2022 in the United States? If so, you’ve come to the right place! In this article, we’ll explore the IRS mileage rates for 2022, and what you need to know if you’re planning on using your car for business travel.
What is the Standard Mileage Rate?
As a car owner, you may be wondering about the IRS mileage rate 2022. Basically, this is used to calculate the amount you can claim as a business expense for every mile you drive in a car. This cost per mile can vary based on your location and the type of car you are driving.
The IRS Standard Mileage Rates from 1st Jan 2022 until 30th June 2022 were:
- 5 cents per mile per vehicle as business expenses
- 18 cents per mile as moving expenses or medical expenses
- 14 cents per mile per vehicle as charity expenses
The rates changed midway from July 1, 2022, onwards and have increased because of the steep rise in gas prices, insurance, repair, and maintenance costs due to inflation.
However, the federal mileage rate for charities has remained unchanged since 2011.
Types of Mileage Rates
Business Expenses
Businesses can deduct mileage rates as business expenses when they use their own car for visits to serve their clients. This means they can deduct 58.5 cents up until June 30, 2022, and 62.6 cents after July 1, 2022, until December 31, 2022, as business expenses whenever their vehicle is used to commute between their office and a client and between clients.
Charity Expenses
When you work for a charitable institution or are involved in volunteer work, you can claim 14 cents per mile as charity expenses. This includes trips made to different destinations for charity collections and also other types of organizational errands.
New IRS Standard Mileage Rates
IRS Standard Mileage Rates from 1st July 2022 until 31st December 2022:
- 5 cents per mile per vehicle as business expenses
- 22 cents per mile as moving expenses or medical expenses
- 14 cents per mile per vehicle as charity expenses
How to Track Mileage
Mileage is one of the most important factors to consider when driving, both in terms of safety and for tax purposes. Knowing how far you’ve gone can help you avoid getting lost, and can also help you determine how much fuel you’re using to claim mileage reimbursement.
There are a few different ways to track your mileage while driving in the United States.
One option is to use a car tracking device. This is faster and more accurate than tracking on paper or Excel sheets.
These devices can be plugged into your car’s dashboard and will track your location, speed, and other information. Some car tracking devices even track the fuel economy and MPG of your car.
Another option is to use a smartphone app like MileageWise. Even though MileageWise is a relatively new player in the mileage tracker app market, it has come up with additional and better features than some of the bigger apps, making it one of the best mileage tracker apps out there.
For example, it can reconstruct past mileage with the help of its AI-based AdWise function. MileageWise also offers a VIP mileage preparation service based on records from previous trips and client locations.
